The transaction fee goes to the Road Traffic Management Corporation (RTMC). The Road Traffic Inspectorate (RTI) and the South African Post Office (SAPO) must levy a fee for each transaction it processes. This fee passes onto the consumer as a service fee using the user-pay principle.

As per my other article on motor vehicle licence renewals (ALV), motorists had to deal with a similar increase in 2018. The fee increased by R30. Before this, the fee had only increased R6 since 2009.

Although the service fee is standard nationwide, licencing fees differ between provinces.